Welcome to this week’s edition of the SimpleReverse Weekly Market & Interest Rate Update for the week ending 8/7/26! This newsletter gives you a quick update on what is going on in the markets and where the 10YR CMT is headed for the upcoming week.
Market Update:
Mortgage rates continued moving higher this week to the 6.70% range, while the 10YR CMT continues trading in the 4.65%-4.70% range again this week.
This week is a reminder that the labor markets remain one of the biggest drivers of mortgage interest rates. Early in the week, markets continued digesting the FED’s cautious stance on inflation. However, the end of the week jobs report showed a slowing labor market, reducing expectations for a near-term rate hike.
The jobs report showed that the economy lost jobs in July and May and June’s numbers were revised lower, surprising economists who expected to see job growth. These numbers reinforce a slowing labor market, putting less pressure on the FED to raise rates. However, higher oil prices and ongoing geopolitical pressures have kept inflation concerns elevated. As a result, expectations are growing for the FED to continue a pause rather than looking to tighten monetary policy.
For Reverse Mortgage Professionals, it remains important to do the right thing for your clients and show them how the benefits of a rising line of credit, no required payments and a tool like a reverse mortgage can help them combat rising costs, diminishing purchasing power and increasing volatility in the markets. More seniors than ever are carrying high credit card balances, and conversations around how a reverse mortgage can still improve their overall financial picture by increasing cash flow, reducing monthly obligations and providing greater retirement flexibility remain important!
10YR CMT Interest Rate Projection for Next Week:
The 10YR CMT currently sits at 4.67% for this week and was down then back up again this week. Overall, we will be flat with about a
decrease of 1-2 bps
in the Expected Rate next week! This will have
NO IMPACT on the Expected Rate and will result in the SAME Benefit Amounts next week!
Based on the data from this week, we will see a decrease in the Expected Rate of about 1-2 bps for next week. As mentioned above, this change will have NO IMPACT on Benefit Amounts next week. So, if you have applications or closings, there will be
NO DIFFERENCE IN BENEFIT AMOUNTS FOR YOUR CUSTOMERS FROM THIS WEEK TO NEXT WEEK! As usual, rates for next week will take effect on Tuesday, August 11! We are providing this data so that YOU can continue to make the decisions that best suit your business based on the information you have!
If you have questions about this, please let me know! Thanks for the partnership and Good Selling!!!
